The crash resulted in an astonishing 1 percent decline for the week, including a loss of over 20 percent in Bitcoin itself. While this loss was almost certainly caused by a huge move in the short-term, it also bears mentioning that more volatility can lead to larger losses. The decline in Bitcoin is indicative of a sharp increase in the usage of other crypto-currencies to transact money. As the price of Bitcoin continues to decline, the demand for, and use of, other crypto-currencies will need to increaseand with that, the price of Bitcoin could take a hit, too.
As this article is already long enough, I will keep this up to this point. But the reason this story is so important is because many of the financial players involved have been using Bitcoin much in the way the internet used to allow for a decentralized, global transaction system. And it appears that there’s a lot of concern behind the scenes over this trend changing into something destructive.
All-time lows, at least if we are just looking at short term periods, are a common trait in any era. But, at its present-day levels, Bitcoin is a very, very dangerous currency in terms of any number of potential problems we can see it impacting today. Before I get into the list
What Is Bitcoin? As a currency, Bitcoin’s first-market adoption has been seen in the past 12 monthsit isn’t too surprising really given the lack of innovation in cryptocurrency over the last 12 months. Bitcoin has, for decades, been a very useful piece of technology. It allows you to transfer the value of wealth across borders and at great speeds. However, it also has some major problems with abuse and manipulation. A quick glance at the “who is doing what with the money” document from Mt. Gox shows things are not looking good there in the least. There are other concerns in which Bitcoin has a long way to go until they are rectified as well. As you can see in the chart below, there is no point in using Bitcoin over traditional trading mediums such as the stock or bond market or in the current global banking system. There is also the issue of Bitcoin having the same “invisible” problems as other currenciesit is just too useful to the system in the first place to be ignored.
Does Bitcoin Really Have Any Problems? “I cannot tell anybody what is going to happen in the future,” David VanVoorhis recently told the Financial Times, when asked about the digital currency he is involved in, Bitcoin. VanVoorhis has an incredible amount of experience in the space. He worked in the space for a very long time, and is often regarded as the “father of Bitcoin”he developed Bitcoin. During his time at Visa and MasterCard and in the financial industry at large, many of his ideas were executed. Bitcoin, though, still has a lot of problems that, if he isn’t careful, the world’s financial players could look forward to for some time to come.
What Are The Problems With Bitcoin? 1) It Has Poor Privacy 2) It Has Poor Instant Verification 3) It Has A Collusion Issue When it comes to money, Bitcoin has all the problems one could possibly think of. It has all of the problems outlined in the story above. There are even more problems in the way it is conducted and the way it needs to be handled in the future and it’s pretty staggering to see. (The chart below shows all a person needs to know to understand the current mess.)
The biggest problem with Bitcoin lies in an even older set of vulnerabilities that can be exploited against it. If that wasn’t bad enough, since we will be dealing with Bitcoin in this article, it’s very, very clear that Bitcoin could also be used in a way that is extremely dangerous for people who do business online. Just think about how a hacker could use this to compromise your website or steal your private information. Again, just think about just how good of a hacker would need to be to breach that. So, are there problems with Bitcoin? Yes, but again, it is far, far more interesting to focus on Bitcoin’s current issues. This is a list of problems in which it could possibly be dangerous in the right hands. If Bitcoin doesn’t start to start growing as a viable and legitimate currency with problems, the Bitcoin economy as a whole is in serious trouble, not just in terms of what the Bitcoin market can look like, but in terms of how it can function.
1) It’s An Enormous Bubble The current price of Bitcoin is just a hair over $9,000this is the median price people are reporting to have found on Cryptsy recently. Now, the prices of other cryptocurrencies have also been soaring as wellthe total market capitalization